Short Term Disability

Unexpected personal illness, recovery from surgery, and other temporary health problems can arise at any time, causing a brief period of disability from work. When this happens, short-term disability benefits may help to offset the loss of a regular income. This special insurance can give peace of mind while protecting employees from financial disaster. However, it's important to choose the right short term disability insurance that will best meet individual needs. Here, learn more about short-term disability benefits, what plan features to look for, and how to choose the right plan.

What are Short Term Disability Benefits?

  • Short-term disability insurance is a special benefit that employees may voluntarily choose to cover them financially if they cannot perform their work duties due to a non- work related temporary illness or injury.
  • Short-term disability insurance provides a portion of the employee's regular weekly salary (generally 50 to 70 percent of gross income) for a specific number of weeks (up to 26 weeks),starting at 14-days after the condition occurs. In some cases, short-term disability changes over to long-term disability if the employee chooses this coverage or it's deemed that the employee will not be able to return to regular employment due to the health condition.
  • It's important to note that not all employers offer access to short-term disability insurance. Nor, does short-term disability insurance replace workers' compensation insurance, which provides financial and medical support when an employee is hurt or made sick as a result of a workplace incident. Short-term disability insurance provides a cash benefit to the employee while he or she is out on a medically approved leave.
  • An employer may request that the employee use of available sick time and paid time off before short-term disability benefits kick in. Short-term disability insurance does not pay for medical care; rather the employee's health insurance benefits take care of this. COBRA can be offered if the employee will be out on a leave for more than 30-days.